estimating the economic impacts of festivals and events

ESTIMATING THE ECONOMIC IMPACTS OF
FESTIVALS AND EVENTS: A RESEARCH GUIDE
By Ben Janeczko, Trevor Mules and Brent Ritchie
RESEARCH REPORT

RESEARCH REPORT SERIES
The primary aim of CRC Tourism’s research report series is technology transfer. The
reports are targeted toward both industry and government users and tourism
researchers. The content of this technical report series primarily focuses on
applications, but may also advance research methodology and tourism theory. The
report series titles relate to CRC Tourism’s research program areas. All research
reports are peer reviewed by at least two external reviewers. For further information
on the report series, access the CRC website, [www.crctourism.com.au].
Editors
Prof Chris Cooper University of Queensland Editor-in-Chief
Prof Terry De Lacy CRC for Sustainable Tourism Chief Executive
Prof Leo Jago CRC for Sustainable Tourism Director of Research
National Library of Australia Cataloguing in Publication Data
Janeczko, Ben.
Estimating the economic impacts of festivals and events : a
research guide.
Bibliography.
ISBN 1 876685 35 2.
1. Festivals - Economic aspects - Australia. I. Mules, Trevor. II. Ritchie, Brent W.,
III. Cooperative Research Centre for Sustainable Tourism. IV. Title.
338.473942
© 2002 Copyright CRC for Sustainable Tourism Pty Ltd
All rights reserved. No parts of this report may be reproduced, stored in a retrieval
system or transmitted in any form or by means of electronic, mechanical, photocopying,
recording or otherwise without the prior permission of the publisher. Any enquiries
should be directed to Brad Cox, Director of Publications or Trish O’Connor, Publications
Manager to info@crctourism.com.au.

EXECUTIVE SUMMARY
Although they may have a number of other objectives, festivals and
events in small regional destinations often play an important role in
tourism development and thereby in economic development. In this
study we review basic principles of economic impact and apply them
to a series of four special events held at Thredbo in Kosciuszko
National Park. The events are all held in summer-autumn and are part
of a strategy by local tourism managers to develop a non-winter
tourism season in an area where snow skiing has been the traditional
attraction.
The four events in question were:
1. Australian Mountain Bike Association Cup
2. National Runners Week
3. Shakespeare Festival
4. Thredbo Jazz Festival
This study differs from many other studies into the economic impacts
of events in that the focus of attention is the small regional economy
consisting of the Shires of Cooma-Monaro, Snowy River, and Bombala
– collectively referred to here as the Snowy Region. Most other studies
of the economic impact of events focus on the State economy rather
than the sub-State regional economy. However, both the events and
the regional economy in which they are held are smaller than those
that are usually the subject of an economic impact study.
A number of general research issues are reviewed, including sampling
of event participants, questionnaire design, and the development of
multipliers for the Snowy region. The latter breaks away from the past
reliance on multipliers from input output models, there being no input
output model for the Snowy Region. In any case the region has little
industrial interconnectivity that is the core of the input output model.
i

Instead, this study develops the classic multiplier drawn from
Keynesian economics, and estimates the economic impact on Gross
Regional Product using data available from Australian Bureau of
Statistics’ sources. Gross Regional Product is the regional equivalent of
the usual concept Gross Domestic Product, and is a measure of the
gross income (both labour income and business income) that is
generated in the Snowy Region by visitors to the events being studied.
On average the impacts on Snowy Gross Regional Product are 39.8%
of the expenditure of visitors tom the events, illustrating the high
degree of economic "leakage" from a small regional economy. This is
because many of the goods and services used by visitors are not
produced in the region. For example, most alcoholic beverages are
produced elsewhere, either in breweries in capital cities, or in wineries
in other regions.
The results of modelling the four events were as follows:
Further research is required to enable the estimated impacts on Gross
Regional Product to be broken down into sectors in the region. This
information would enable event managers and organisers to identify
those businesses that were receiving significant economic benefit
from the events. For example, it is known that larger events in capital
cities have economic benefits for the retail sector, as well as the more
traditional accommodation, transport, and entertainment sectors.
Research is also required into the development of a standard question
bank that could be accessed by event managers for use in carrying out
their own economic impact survey of an event. A question bank
approach has the advantages of both flexibility and consistency.
ii
EVENT VISITOR EXPENDITURE $ GROSS REGIONAL PRODUCT $
Mountain Bike Cup 222 258 88 459
National Runners Week 294 871 117 359
Shakespeare Festival 43 617 17 360
Thredbo Jazz Festival 308 400 122 743

TABLE OF CONTENTS
1. INTRODUCTION.....................................................................1
2. THE NATURE OF EVENTS AND
EVENT ECONOMIC IMPACTS ................................................4
2.1 Types of Events...............................................................4
2.2 Event Impacts.................................................................7
2.3 Event Economic Impacts...............................................11
3. DATA AND INFORMATION COLLECTION ...........................14
3.1 Business sector surveys.................................................14
3.2 Consumer/participant surveys.......................................15
4. ASSESSING PRIMARY ECONOMIC IMPACTS......................17
4.1 What method to use ....................................................17
4.2 Assessing non-local participant numbers ......................26
5. ASSESSING SECONDARY AND
TOTAL ECONOMIC IMPACTS ..............................................27
5.1 Multipliers and Models.................................................27
6. WHERE TO FROM HERE? ....................................................33
REFERENCES...............................................................................34
APPENDIX A – SAMPLE PHONE SURVEY INSTRUCTIONS .......36
AUTHORS ...................................................................................38
LIST OF TABLES
Table 1 Possible impacts resulting from events............................8
Table 2 Approaches to Event Impact Assessment......................10
Table 3 Telephone survey code of ethics ...................................20
Table 4 Checking Representativeness of the Sample .................22
Table 5 Errors in Data Entry and Subsequent Data Analysis.......25
Table 6 Location Quotients for Snowies Industries ....................31
Table 7 Impact on Gross Regional Product of Summer Events...32
iii

LIST OF FIGURES
Figure 1 Categorisation of Events.................................................5
Figure 2 Event Types ....................................................................6
Figure 3 The Multiplier Effect .....................................................12
Figure 4 Sample questions .........................................................21
iv

1. INTRODUCTION
Event and festival tourism is one of the fastest growing forms of
tourism. It is becoming increasingly popular in rural areas as a means
to revitalise local economies. Advancing technologies and changing
weather patterns (ie increase in droughts and floods/storms) have
brought about the need for diversification of industry in areas
previously reliant on traditional industries such as farming, or narrowly
focussed tourism industries. Events and festivals have been used with
great success in many such areas as a means to draw people to
regions that traditionally have a seasonal tourist appeal. The Thredbo
Jazz festival is a prime example, becoming increasingly popular
amongst tourists and injecting extra revenue into the region in a time
that is between the hectic winter ski seasons.
The fixed length of events and festivals encourages visitors to attend;
often attracting new visitors that would otherwise not experience that
particular region. This extra exposure acts as an indirect form of
marketing for the region as a whole, offering an opportunity to reach
a previously untapped market. These new tourists bring with them
new money, further diversifying the market and subsequently
increasing both real and potential revenue generation. It is also
important to recognise that events and festivals are attractions that
have drawing power and holding power. This means that they not
only bring in new visitors, they also help to keep visitors in the region
longer. This shows the importance of measuring not just the
economic impact of those that come specifically for the event, but
also those that didn’t and stayed longer because of the event.
The fixed duration of events and festivals also creates the need for a
different approach to organisation and funding when compared to
traditional attractions. This includes the need for Economic Impact
Assessment (EIA) in order to justify scheduling of events, to attract
sponsors and to act as a vital planning resource. It should be noted
however that economic impact assessments should not be solely
responsible for assessing the success of an event or festival. The extra
attention gained by the host region as a direct result of the
event/festival could well reap far greater economic rewards in the
future as a result of increased exposure.
1

This guide is intended for businesses, event organisers and regional or
local tourism organisations that have previously engaged limited or no
event economic impact research. It is hoped that the processes
involved in Economic Impact Assessment are made clearer through
the use of this guide, and that it is a useful starting point for planning
a research project to calculate the economic impacts of events and
festivals in local and regional areas. It is not the intention of this guide
to go into the explicit details of every aspect of EIA research, but will
supply a basic understanding of the processes involved and to provide
references for further study.
The next section of this guide will discuss the nature of events and
economic impacts. A brief introduction to events is given, with a
framework for their categorisation presented (see Figure 1). Examples
of different events are discussed and a typology is suggested for their
classification. The importance of recognising various event aspects is
identified, discussing issues that may arise from different event types.
Impacts that result from events are discussed, emphasising that
economic impacts are not to be considered as the only impacts to
assess when reviewing an event. The different approaches to Event
Impact Assessment are discussed, with reference made to the
advantages and disadvantages of each method. The section then
summarises the nature of event economic impacts, describing the
concepts behind them, multipliers and leakage.
Section three describes data and information collection methods for
conducting economic impact assessments. Business sector surveys are
discussed briefly, presenting the advantages and disadvantages of
using such techniques. The remainder of section three focuses on
participant (consumer) surveys, outlining why they are the preferred
method for economic impact assessments. The participant based
survey is the basis for the remainder of the guide.
Section four deals with the assessment of primary economic impacts.
The various methodologies are discussed, with sampling techniques
and overall questionnaire design explained. Suggestions are made as
to which methods to use varying scenarios in order to achieve a
representative data set. The entry and analysis of data is also
considered, emphasising the need for accuracy. The importance of
assessing non-local participant numbers is also discussed.
2

The methods and concepts behind the assessment of secondary and
total economic impacts of events are presented in section five.
Economic multipliers and models are reviewed, and an economic
multiplier is developed for the Snowy Mountains Region as a case
study. Location quotients are derived for various Snowy Mountains
industries, facilitating the estimation of Gross Regional Product (GRP)
figures. The estimated impact on GRP is given for each of the four
events studied in the Snowy Mountains Region in 1999/2000.
The final section offers suggestions for the use of economic impact
assessments. The value of such assessments as supporting documents
is discussed.
3

2. THE NATURE OF EVENTS AND EVENT ECONOMIC IMPACTS
This section introduces the reader to the different types of events and
festivals as an introduction and background to the main part of this
manual, before discussing event and festival impacts. This section
begins with a discussion of the types of events that can be hosted by
destinations, before discussing the different approaches to event
economic impact, specifically addressing the approach concerned
with assessing the macroeconomic benefits to the destination area
through the use of multipliers.
2.1 Types of Events
Events can range from a one or two day sporting event (eg Melbourne
Grand Prix) to a month long festival (eg Edinburgh Fringe Festival).
The types of visitors to these events can vary greatly, as can their
behaviour. Preliminary research conducted by the CRC for Sustainable
Tourism tends to suggest that participant-based events (eg National
Runners Week) may yield greater expenditure per person than
spectator based events (eg Thredbo Jazz Festival). Therefore, the
economic impact of events may differ due to the type of event
developed and the market attracted to that event.
The scale of an event has a direct relationship with the scale of the
impacts resulting from the event shows how the scale of impacts
(such as attendance, media profile, infrastructure, costs and benefits)
increase along with the scale of the event (see Figure 1).
4

Figure 1 Categorisation of Events
[Source: McDonnell et. al 1999:10]
Events vary from local community based events (eg arts and crafts
stalls), to major events (eg The National Folk Festival), to hallmark
events (eg Sydney Gay and Lesbian Madri Gra) to what have been
classified mega-events (eg The Olympics). As the size of these events
increases so to do their potential attendance, media coverage, and
potential costs and benefits, including economic impacts.
Furthermore, the nature of events can also differ due to the number
of venues used during the event. Events can be all inclusive at one
venue (eg AFL Grand Final) or held at many venues throughout a
region (eg Olympic Games). Multiple venue events are more difficult
to evaluate or assess as boundaries become blurred, the sample and
study area gets larger, and there is often a chance of counting the
same visitor many times.
A framework for the categorisation of events is useful for determining
strategic gaps through the identification of different events, their
timing, location and themes. It is also useful to classify events in order
5

to assess economic performance against criteria such as the timing of
the event (whether a summer or winter event), its location (whether
it is in Jindabyne or Thredbo), or its themes (whether it is an active
sports event, or a passive music event). Jago and McArdle (1999)
present a framework that takes into account the temporal or timing
aspects as well as the spatial or location aspects and the thematic
aspects of events in order to categorise them. This framework is
presented in Figure 2.
6
Figure 2 - Event Types
[Source: Jago & McArdle, 1999:7]

The identification of each of these aspects is important when
considering the overall value of an event to the host community. For
example, a business event that occurs in the busy school holiday
period may be causing extra stress on a region’s infrastructure, when
the same event could easily be moved to a slower period of the year.
The spatial implications of an event include not only the obvious
benefits and restrictions to the host town/region, but also the naming
of the event such as the case of the Thredbo Jazz Festival or the
Canberra Multicultural Festival. The title of an event must accurately
reflect the host region or the supplier region (eg State Competitions)
in order to ensure recognition for all involved and optimise the use of
precious regional sponsorship dollars. The thematic nature of events
can be used to either justify or disqualify the benefits or advantages
of events based on their importance to the host community.
Although more traditional events such as horticultural and agricultural
shows, as well as art and cultural events still exist and have been in
existence for many years in rural or regional Australia. An increasing
number of other events have grown rapidly over the past 10 years.
Ryan et al. (1996) note a huge increase in sporting and participation
events such as Masters Games, marathons and triathlons, as well as
visual and performing arts events in New Zealand. This trend has seen
to be duplicated in Victoria, Australia (see Jago and McArdle 1999).
2.2 Event Impacts
The positive flow of revenue into a region should not be the only
factor considered when determining the apparent success of an
event. The negative social impacts of an event can do great harm to
the future of an event and its host region, and ecological impacts may
cause the premature death of a poorly managed event or festival.
Conversely, there are many other positive impacts that may counter
negative economic impacts. An event that spreads the seasonality of
tourism in a region also evenly distributes the flow of money into a
region, increasing the opportunities for full time employment. The
introduction of more full time jobs into a region causes many positive
and negative flow-on effects in that region. Subsequently, these
effects are measured through the use of what are termed multipliers,
which are discussed in more detail soon.
7

Other factors that may contribute to a successful event could include:
• Increasing visitor length of stay in region/town;
• Increasing visitor expenditure in region/town;
• Improving destination awareness; and
• Increasing civic pride or community solidarity.
These factors are all obviously beneficial to a region and its tourism
industry, although the cost at which they are obtained must be
justified. Other positive and negative impacts are outlined in Table 1,
and should also be considered and balanced with economic impact
assessments. Furthermore, these impacts differ due to the size and
scale of the event ranging from a local community based event such
as an art show to a mega-event, such as the Olympics. For instance,
little real estate speculation could occur as a direct result of the
hosting of a local event such as an art show, compared with the
hosting of a mega-event such as the Olympic Games.
8
Table 1 - Possible impacts resulting from events
TYPE OF POSITIVE NEGATIVE
IMPACT
Economic
Tourism/
commercial
• Increased expenditures
• Creation of employment
• Increase in labour supply
• Increase in standard of living
• Increased awareness of the region as
a travel/tourism destination
• Increased knowledge concerning the
potential for investment and
commercial activity in the region
• Creation of new accommodation and
tourist attractions
• Increase in accessibility
• Price increases during event
• Real estate speculation
• Failure to attract tourists
• Better alternative investments
• Inadequate capital
• Inadequate estimation of costs
of event
• Acquisition of a poor reputation as a
result of inadequate facilities,
improper practices or inflated prices
• Negative reactions from existing
enterprises due to the possibility of
new competition for local manpower
and government assistance

TYPE OF POSITIVE NEGATIVE
IMPACT
Physical/
environmental
Social/
Cultural
Psychological
Political/
administrative
• Construction of new facilities
• Improvement of local infrastructure
• Preservation of heritage
• Increase in permanent level of local
interest and participation in types of
activity associated with event
• Strengthening of regional values and
traditions
• Increased local pride and community
spirit
• Increased awareness of non-local
perceptions
• Enhanced international recognition of
region and values
• Development of skills among
planners
[Source: Hall 1992: 8]
• Ecological damage
• Changes in natural processes
• Architectural pollution
• Destruction of heritage
• Overcrowding.
• Commercialisation of activities which
may be of a personal or private
nature
• Modification of nature of event or
activity to accommodate tourism
• Potential increase in crime
• Changes in community structure
• Social dislocation.
• Tendency toward defensive attitudes
concerning host region
• Culture shock
• Misunderstanding leading to varying
degrees of host/visitor hostility
• Economic exploitation of local
population to satisfy ambitions of
political elite
• Distortion of true nature of event to
reflect elite values
• Failure to cope
• Inability to achieve aims
• Increase in administrative costs
• Use of event to legitimate unpopular
decisions
• Legitimation of ideology and
socio-cultural reality
9

Getz (1994) suggests that there are five different approaches that can
be used for Event Impact Assessment. Table 2 shows these different
approaches, their goals and commonly used measures for their
assessment. The key to any and all of these methods is to obtain
accurate data and information upon which to evaluate the events
economic impact.
10
Table 2 Approaches to Event Impact Assessment
APPROACHES GOALS COMMONLY USED
MEASURES
Break-Even or
Profit/Loss
Return on
Investment
Economic Scale
Economic Impact
Costs and
Benefits
• Short term assessment of
financial efficiency or solvency
• Show the benefits of grants or
scholarship
• Calculate ROI for private investors
or owners
• Determine the economic scale of
one or more events from the
destination perspective
• Determine the macroeconomic
benefits to the destination area
• Evaluate the costs and benefits
from the perspective of the host
community and environment
• Determine the net work value of
the event
• Measure direct costs and
revenues to organisers
• Determine surplus or deficit
(profit or loss)
• Determine the relationship
between grants/scholarship and
levels of visitation or economic
benefits
• Use standard ROI accounting
practices
• Measure total attendance and
expenditure of event consumers,
plus organizers’ expenditures
• Estimate direct and indirect
income and employment benefits
• Often uses multipliers or
econometric models
• Compare tangible and
intangible costs and benefits
short and long-term
• Assess opportunity costs of
investments
• Examine the distribution of
impacts
• Judge the net worth and
acceptability of the event(s)

Many event organisers and regional and local tourism organisations
examine or wish to examine the ‘economic impact’ or macroeconomic
benefits of their events or festivals upon the destination, through
estimating the direct and secondary benefits of hosting their event at
the destination region. This approach often uses either business or
consumer surveys (which is discussed in Section 3), as well as
multiplier or econometric models, discussed next and in section 5. The
remainder of this guide is concerned with determining the
macroeconomic impacts of events at the destination level only, not
the costs and benefits, break-even or profit-loss, or return on
investment of events and festivals.
2.3 Event Economic Impacts
The economic impacts of events on the macroeconomy of a region
are categorised into primary and secondary economic impacts. The
primary impact is the direct economic impact of the event measured
by surveying participants or measuring business sales. Secondary
impacts are those that result from the introduction of new money into
the economy. A ripple in a pond is a popular metaphor for these
secondary impacts. A stone hitting the water surface is the direct
impact, and the first ripple caused is the indirect impact and the
second ripple is the induced impact. Together these are called the
secondary impacts. As the ripple spreads out it affects more and more
of the pond. This ‘ripple effect’ is caused by the spending of new
money in the local region in areas such as wages or local product. The
‘ripple effect’ is measured by multipliers and is presented in Figure 3.
11

Figure 3 - The Multiplier Effect
The inclusion of secondary impacts provides a more accurate
assessment, as it recognises the interdependence of different sectors
within a region and how reliant a region or town is on importing
goods and services. This is measured through the use of multipliers by
calculating the leakage of new expenditure in the area.
Multipliers measure the amount of money spent that is not leaked out
of the region due to further spending on products and services not
sourced from within the study region. In some regions who are
dependent on importing goods and services the amount of money
left in the local economy is less than that spent by consumers. This is
because some regions and towns are very dependent on goods and
services from outside of the region and are not very self-sufficient. For
instance, Sydney is more self-sufficient and less reliant on importing
goods and services than Canberra, and subsequently Canberra is
more self-sufficient and does not need to import as many goods and
services as Thredbo.
12

Multipliers work by considering the amount of leakage from an area
and expressing the amount of retained revenue as a ratio. The greater
the magnitude of the ratio then the less the amount of leakage from
the region or town. For instance, sources of leakage from an area
include taxation, foreign ownership and investment, savings, and the
spending of money on products and services not sourced from the
local region. The main multipliers used in economic impact
assessments are the output, employment and value-added or income
multipliers. The output multiplier measures the increase in level of
economic activity in the region as a result of direct tourist expenditure.
It focuses on the changes in levels of production, not sales or income
left after leakages have been accounted for. The employment
multiplier is the ratio of the direct and secondary employment created
by extra tourist expenditure. While the value-added or income
multiplier measures the total amount of income left after leakages
(such as savings, imported goods and services, taxes etc) have been
accounted for. This is the most accurate level as it measures the
income left in the region after the increase in economic activity due to
tourist expenditure.
The two methods for the collection of data collection for examining
the macroeconomic impact of events and festivals at the destination
level are consumer/participant surveys and/or business sector surveys.
The following section outlines these methods and their associated
advantages and disadvantages.
13

3. DATA AND INFORMATION COLLECTION
This section examines the two main methods of data or information
collection that is required to measure the macroeconomic benefits of
events to the destination area, which are the business sector survey or
the consumer or participant survey.
3.1 Business sector surveys
The surveying of businesses is one method of gathering expenditure
data that is often considered. However there are some fundamental
problems with the methodology that need to be addressed if accurate
results are wanted. These include the need to establish a sales
benchmark, the unwillingness of merchants to release data, and the
time and money costs in undertaking this form of research. When
using this method it is important to take into consideration pre and
post event figures as a benchmark for sales levels so that the
economic impact of a special event is not over-emphasised. However
establishing a sales benchmark does not overcome seasonal variation
in sales which can distort the true impact of a special event. To provide
reliable and valid data, a business survey may have to be conducted
on an on-going basis, including data collection before, during and
after the event.
Businesses are often reluctant to release financial information,
especially sales data to researchers. Researchers must assure
businesses absolute confidentiality to improve business survey
response rates and to gain access to accurate data. The sensitive and
confidential nature of primary baseline data often inhibits full
cooperation from businesses. Furthermore, often the researcher has
constraints of time and especially money, in implementing an
economic impact assessment through a business survey.
Other problems can arise due to the data being secondary data,
meaning it has not been collected for the specific purposes of the
survey at hand. The consequences of this are that the supplied
information is often not in the format required for the research, and
that the research methodology must be changed to suit the available
data. It is for these reasons that many researchers prefer to
14

undertaken consumer or participant surveys to collect the data and
information they need to undertake economic impact assessments.
3.2 Consumer/participant surveys
Measuring consumer expenditure through the use of participant
surveys has many benefits. It is easier to ask a visitor about their
spending and behaviour patterns than it is to ask for a business’ sales
figures. The survey also gives the opportunity to ask the participant
some demographic based questions, assisting in the compilation of a
market profile. The ability to tailor the survey specifically to the data
required by the research methodology at hand ensures that the data
gathered in the most suitable and accurate way. This benefits the
researcher by allowing more freedom to break new ground, targeting
areas that have been identified as key outcomes of the research.
When conducting participant surveys there are certain important
factors that need to be considered at the research design phase.
These include:
• Are the tourists here specifically because of the event?
• Will the data be collected during or after the event?
These are important considerations when designing the survey in
order to obtain maximum accuracy of results. This accuracy helps to
pinpoint the drawing power of events as attractions, as well as their
holding power on visitors already in the region.
It is possible to generate these more accurate results with the
investment of more time and money. These more advanced
calculations may ascertain figures such as whether tourists already in
the area increase their stay (and consequently expenditure) as a result
of the event being held. Another target result might be the extra
money spent by locals in the region who would have otherwise
travelled elsewhere if the event had not occurred. The identification
of trends in these areas helps to present a more realistic analysis of
economic impact.
The study of the 1997 Melbourne International Flower and Garden
Show is an excellent example of identifying the drawing power and
15

holding power of the event (KPMG 1997). Many other studies have
focused on these more detailed statistics in order to provide the real
economic impact resulting from an event being held, including the
study of the 1997 Opera in the Outback (SATC 1997). Gratton and
Taylor (1995) also explicitly mention the use of these techniques.
Another factor that is often overlooked is those who travel to the
destination region for the specific purpose of attending the event, and
are accompanied by others who do not visit the event. Although
these accompanying people do not attend the event, the money they
spend in the host region would not be spent there if they did not
accompany event participants.
The main problem with participant-based surveys is the lack of
interest in filling out forms from potential respondents. Many events
include the consumption of liquor, decreasing the interest levels (and
competency) of respondents. Researchers have also reported potential
problems with inaccuracies in data obtained from participants, both
through embellishment and uncertainty. The timing of the
questionnaire can have a substantial effect on the response gained
from the respondent. If the questionnaire is delivered prior to the end
of the event the respondent must estimate how much they will spend,
where some respondents will be unsure. Many participants’
expenditure may actually vary if event is competitive and the team
they support wins or loses. Surveys delivered after the event may also
pose problems for researchers, as the respondents become less sure
of their expenditure as time passes after the event took place.
These problems can be overcome by the introduction of several
different techniques, which are discussed in section 4a. It is essential
to balance the costs and benefits of each technique in relation to the
study objectives identified and the time and costs allocated to the
project.
16

4. ASSESSING PRIMARY ECONOMIC IMPACTS
The remainder of this guide focuses on the use of participant based
surveys, as they are more reliable and easier to implement, and these
surveys can collect information and data relating to the primary or
direct economic impacts of event participants, which is the first
important stage in assessing the macroeconomic benefits to the
destination area from hosting an event or festival.
4.1 What method to use
There are a variety of methodologies that could be used to assess the
primary economic impacts of any event. Each of these methodologies
has its own advantages and disadvantages associated with it. The first
decision to be made is that of the study area. Event organisers need
to decide whether they want to know the direct impact on the local
area (eg. Thredbo) or the local region (eg. Snowy Mountains). This
decision is often made based on the supporting organisations and
agencies as a result of a political agenda, but needs to be carefully
chosen in order to reflect an accurate analysis. Using a slightly larger
study area can give a more complete illustration of the economic
impact of an event, particularly if the event is held in a very small
town. For example, the Thredbo Jazz Festival is held in a town with a
fairly small population that relies on the surrounding region to
support it.
For instance, travellers going to Thredbo for an event or festival may
purchase petrol or groceries in Jindabyne or Cooma. Assessing the
primary economic impact of this event on Thredbo will not show the
total impact, as visitors will invariably spend money outside the small
community. It is this money spent within the region that may not be
considered if the study area defined is too small. Researchers must
also be careful not to make the study area too big, as this can result
in a distorted figure that does not accurately reflect the benefit to the
immediate surrounding region. Some factors that need to be
considered when choosing the study area include:
17

• How close do the supporting workers live to the event site?
• How close are all necessary goods/services to the event site?
• The jurisdiction of supporting agencies.
Methodology
The next step is to decide on a survey method. This will determine the
cost of the survey as well as the accuracy of the data collected.
Response rates vary greatly according to the method used, as do the
quality of the responses. There are many techniques that can be used
to increase response rates, for example an incentive such as a prize
draw. Sourcing this prize from a direct stakeholder of the event (eg a
night’s accommodation or free pass for next event) offers a cost
effective incentive that is another form of indirect advertising. Studies
have shown that the number of contacts made with mail survey
respondents can significantly increase response rates. These contacts
include pre-notification of survey, the actual survey delivery and
reminder notices (Peterson et al. 1989 in Ryan 1995). Further research
conducted by Kamins (1989 in Ryan 1995) suggests that respondents
like to respond in order to feel helpful. This desire to be helpful can
be taken advantage of to increase response if the survey is designed
appropriately.
Ryan (1995) identifies seven factors that affect response rates for mail
surveys. These are:
• The interest of the respondent in the survey topic;
• The length of the questionnaire;
• Questionnaire design/presentation/complexity;
• The style, content and authorship of the accompanying letter;
• The provision of a postage paid reply envelope;
• Rewards for responding; and
• The number and timing of follow-ups.
There are two main categories of survey method: self-administered
and interview. Self-administered surveys are typically mailed out or
dropped off and picked up. The main advantage of implementing a
self-administered survey is the dramatic reduction in cost due to
reduced staff expenses. There are however several issues that need to
be addressed in order to gain a significant response. The issue of
18

incentive to respond has already been raised. One definite problem
with self-administered surveys is the difficulty in providing support to
respondents having difficulty completing the survey. Respondents are
likely to leave questions they don’t understand unanswered, or even
worse, provide inaccurate data. This accentuates the need for
questionnaire design to be explicit and simple. There are many good
references for those wanting to design their own survey tools
including Brunt (1997), Alreck and Settle (1995) and Veal (1997). It is
important to study research methods carefully and apply these
methods to your design. A poorly designed survey instrument can
only return poor quality data. Survey respondents must understand
exactly what you want them to tell you, and you must provide
appropriate tools for them to answer correctly.
Thorough testing of your survey instrument before implementation is
crucial to developing an accurate response from your survey sample.
Perhaps the most disadvantageous aspect of self-administered surveys
is the low response rates usually attained. The most effective ways to
increase response rate are to offer incentives, ensure a prepaid return
envelope is included, and include a cover letter detailing the purpose
of the survey and what benefits will result for both the researchers
and the respondents (incentives).
Interview based survey instruments are not without their fair share of
problems. These include face to face interviews, phone interviews and
other prompted responses. For all of the advantages they do offer
there is one problem that is always an issue. This problem is
consistency. The human element in interview based surveys does offer
the ability to explain and interpret both questions and data, although
all interpretation should be kept to a bare minimum. The consistency
problem arises from the fact that all people are different, and they do
things in different ways. This will cause anomalies not only between
different interviewers, but also between respondents if the survey
implementation is not undertaken carefully. It is for this reason that all
interviewers involved in implementation of a survey must have a
thorough understanding of the research project and related
methodologies. A well trained group of interviewers will introduce
minimal bias into the sample, providing more representative results.
The previously mentioned texts also create a valuable reference for
managers wishing to train interviewers. There are several techniques
19

that can be applied to interviews in order to create consistency across
all interviews. All interviewers should be given a sample greeting to
use when approaching/interviewing respondents. An example of
instructions that may be supplied to interviewers conducting a phone
interview is attached as Appendix A.
Each interviewer should deliver this greeting practically word for
word, with only the interviewer’s name changing. Each interviewer
should also be run through each question including how to ask the
question and what might be some common questions from
respondents. Interviewers should also be given an estimated time limit
for the interview, to ensure all responses are of a similar length and
detail. The combination of these instructions and training should help
reduce biases significantly. Each interviewer should receive clear
instructions and procedures along with a copy of a professional code
of ethics in order to facilitate the delivery of the survey.
It is important to produce a code of ethics to all interviewers in order
to ensure that the research organisation is not seen to be harassing or
taking advantage of potential respondents. All interviewers must
strictly adhere to this code of ethics. A sample code of ethics for
conducting telephone surveys is presented as Table 3.
20
Table 3 - Telephone survey code of ethics
Privacy and Telephone Surveys (code of ethics)
• All callers must disclose your identity and state the purpose of the call.
• Calls to private homes must be made at reasonable hours,
normally 8.30am to 8.30pm.
• Senior Citizens must not knowingly be called after dark.
• Calls should be avoided on public holidays and Sundays.
• Deception must not be used to obtain names of others to call.
• Unlisted or unpublished numbers should not be called.
• If requested to do so, callers must remove the name of any person from the list.
• Lists compiled for one particular survey must not be used for any other purpose
without the express permission of the participants.

Questionnaire Design
Having chosen the appropriate survey method leads into
questionnaire design. A poorly designed questionnaire can cause
more problems than choosing the wrong survey type, and can render
collected information unusable. It is most important that survey
design is carried out with great care to ensure that the correct
questions are asked using the correct prompts for the required
information. It is advised that questionnaire design be only
undertaken after carefully studying the referenced texts in order to
fully understand the pros and cons of different designs. This includes
the use of filter questions, mutual exclusivity, and when to use both
closed and open-ended questions.
Questions regarding expenditure need to be carefully written in order
to obtain the desired information. Questions should ascertain either
how much each respondent spent in total or their average daily
spending and how much they spent in each sector (eg
accommodation, meals, shopping). The generation of these figures
will be useful for lobbying both private and public sector
organisations for future support. An example of suitable questions is
illustrated in Figure 4 and a survey which was applied to events in
Thredbo (AMBA Cup Round 2 Mountain Bike Race, National Runners
Week, Shakespeare on the Mount Festival).
Figure 4 - Sample questions
Q22. To assist us in measuring the economic impact of the Festival,
I would like to ask you some questions about your expenditure while in
(destination region). For the number of people in your group, including
children, for your trip to (destination region) how much did you spend on:
Package Tour (estimate (destination) component by nights) $
Accommodation (not part of package tour) $
Food and Drink $
Transport (petrol, taxis, buses, car hire) $
Festival entry fees $
Shopping $
Entertainment (gambling, clubs, cinema, etc.) $
Other expenditure (medical, hair, personal) $
21

Sampling
Many issues can arise through misguided or ignorant methodology.
Sampling techniques must accurately represent the target population
(ie event visitors) by not focussing on one area or age group.
Controlling the accuracy of the sample involves strategic planning of
collection methods. If the survey is to be delivered in person or over
the phone it is important that interviewers are well trained at asking
questions, so that they can explain any difficulties that respondents
may have. It is also crucial that they understand the importance of
obtaining a representative sample, and the age, sex or appearance of
potential respondents does not bias them.
In order to obtain a representative sample it is extremely important to
use a random sampling method. Representativeness of any research
should be checked so that the findings can be seen to apply to the
total population under study. For instance, in research conducted on
the National Runners Week in Threbo the sample of people surveyed
was seen to be fairly representative of the registration database (see
Table 4). Researchers wishing to cut costs often use convenience
sampling, but this leads to unreliable data, and therefore the limited
usability of this data. Convenience sampling means that respondents
are merely the most convenient to use, whether this means standing
on a street corner and asking everyone who goes by, or ringing every
listing on the first page of a list or database. The main benefit of
random sampling is the assumption that every member of the target
population has an equal chance of appearing in the sample.
22
Table 4 - Checking Representativeness of the Sample
REPRESENTATIVENESS OF SAMPLES: NATIONAL RUNNERS WEEK EXAMPLE
STATE/ DATABASE SURVEY
TERRITORY LIST RESPONDENTS
New South Wales
54.0
52.8
South Australia
22.0
20.8
Australian Capital Territory
18.0
17.0
Victoria
5.0
7.5
Northern Territory
3.0
1.9
Total
100.0
100.0

The categories of sampling that should be used in order to obtain a
representative sample are simple random sampling, systematic
random sampling, stratified random sampling and cluster sampling.
The following gives a brief description of each method.
Simple Random Sampling
This technique if the most simple form of random sampling, and
resembles a lottery draw. The best way to describe it is to imagine that
all of the target population (eg event patrons) have a piece of paper
with his or her name written on it and placed into a bowl. The pieces
of paper are then mixed up and one is chosen without looking. This
process is repeated until the required number of names has been
drawn out to complete the sample. In today’s terms computers would
simulate this method. For example, if an event attracts 2000 visitors
and a sample size of 200 is chosen then a list of the visitors’ names
would be written with a number between 1 and 2000 written besides
each. The computer could then be used to generate 200 random
numbers between 1 and 2000, and the corresponding names become
the sample.
Systematic Random Sampling
This form of sampling is very similar to the previously mentioned
technique, however it uses a more systematic approach. Keeping to
the previous example, this involves the selection of every tenth name
from a randomly chosen starting point until the sample quota is
reached. If face to face interviews are to be conducted every tenth
person walking into the event might be asked to participate in an
interview.
Stratified Random Sampling
Stratified random sampling uses already known demographic
information to obtain a more reliable representation of the target
population. For example, if we know that 60% of our event visitors
are male and 40% are female, then we can reflect this proportion in
our sample. So we would then choose 120 of our 200 (60%) sample
names from male names on the list, and 80 (40%) from female
23

names. This method can be applied using any known demographic
including age, religion, race, occupation, etc.
Cluster Sampling
The cluster sampling technique is a combination of random sampling
and convenience sampling. Clusters of population members are
identified (eg by geographic location) and then each of these clusters
is subject to a random sampling process. For example, if we identified
event visitors to originate from Canberra, Illawarra, Gippsland,
Melbourne metro, Riverina, and other similar regions these would be
identified as clusters of visitors. Each of these different regions would
then be given a corresponding number (as in random sampling) and
regions would be chosen at random until the total number of visitors
in chosen clusters reached the sample size required. Continuing with
our example, if the random selection of clusters included 40% of our
visitors from Canberra, 40% from Riverina and 20% from Melbourne
metro we would then have a complete sample. Every member of the
chosen clusters would then be surveyed. This method is particularly
useful for researchers who have to cover a very large area and have
limited resources.
Data Entry
Data entry must be carried out accurately to ensure that the efforts
made to attain a representative sample are not lost due to error or
misjudgment. Simple spreadsheet applications such as Microsoft Excel
can be used to perform many calculations useful to this type of
research. Statistical programs such as SPSS (Statistical Package for the
Social Sciences) provide a more technical approach, offering crosstabulations
and other useful tools.
There are certain issues regarding data entry that must be addressed
in order to accurately disseminate information gathered. Probably the
most important one for EIA is the entry of “0” when a visitor spends
nothing for a category. The entry of the number “0” ensures that the
average expenditure takes into account the people who didn’t spend
any money in a particular category. If the field is left blank the
resultant average will only take into account the records with an entry
in the corresponding field. An example is illustrated in Table 5 where
24

the direct economic impact is shown of the AMBA Cup Mountain
Bike Race in Thredbo with and without the inclusion of “0” for those
who spent nothing. The example illustrates how a simple error can
exaggerate the findings.
Table 5 - Errors in Data Entry and Subsequent Data Analysis
Data analysis
MISTAKE BY
NOT ENTERING “0”
$479,675 of total
direct economic impact
AMBA CUP MOUNTAIN BIKE RACE EXAMPLE
CORRECT FIGURES BY
ENTERING “0”
$222,258 of total
direct economic impact
Once the data has been entered into a statistical analysis program it
is possible to examine the data to provide many useful outputs. It is
useful to run basic statistics in order to identify mistakes and errors
from the data entry process. These can then be excluded from the
data analysis. Apart from providing the average expenditure
information required to calculate economic impact of the event, a
well designed survey will also allow the derivation of market
segmentation. Information should be looked at by State or Territory of
origin, different age groups and gender to name a few. This
information can then be used to determine which areas to
concentrate marketing efforts for future years.
25

4.2 Assessing non-local participant numbers
It is important to calculate both the number of participants in the
event and the number of non-local participants in order to calculate
the direct economic impact. There are several methods that could be
used for calculating participant numbers. Perhaps the most accurate
is to use ticket sales. If ticket sales information is available this
provides a good idea of how many people attended an event. If the
event is a longer duration than one session the issue of counting the
same person twice arises. Some smaller events keep databases of
participants, which would help in identifying this problem. Other
researchers have gone to great lengths to get an accurate idea of
participant numbers, some resorting to taking aerial photographs
from a helicopter and counting heads (eg. the 1998 Wintersun
Festival see Fredline et al . 1998).
Once the number of non-local participants has been calculated it is
multiplied by the average spending by participants. This figure is the
total direct economic impact of the event. As mentioned earlier, it is
important to perhaps consider factors such as the displacement of
locals and attraction of other visitors to the region resulting from the
staging of the event.
26

5. ASSESSING SECONDARY AND TOTAL ECONOMIC IMPACTS
This section discusses the how from the initial spending of tourists the
secondary and total economic benefits of the event on the economy
of a destination can be assessed. In particular this section discusses an
innovative approach and model undertaken in the Snowy Mountains
region to examine the income multiplier effects of a number of events
and festivals in the region. This model may of interest to other regions
who wish to calculate the secondary income affects of hosting events
and festivals in their region.
5.1 Multipliers and Models
As mentioned earlier, multipliers calculate the secondary economic
impact of spending in a region by illustrating the indirect and induced
components of the initial expenditure of tourists either on
employment, output or income. They do this by estimating the
amount of money that stays in the region through employment of
services and purchases of goods and services that are sourced locally.
Leakage is taken into consideration by estimating the amount of
money that leaves the region through outside employment,
purchases, and taxation, etc.
The figure obtained through the use of these multipliers is the
secondary economic impact. Nevertheless, it is important to note that
for regions that are not self reliant and import a large amount of
goods and services this secondary impact or income will be less than
the initial direct expenditure.
The most usual economic model, especially at the regional level, is the
input-output model (Archer, 1982, Mules, 1996), although at the
national Australian level other models have been used (Adams and
Parmenter, 1995). Input-output models depend on the economy
being large enough for there to be links between industries in the
supply chain. For example, tourists’ use of rental cars stimulates
production of motor vehicles, which in turn stimulates production of
steel, plastic, glass, components such as tyres, seat belts and so on.
27

Small regional economies are characterised by a heavy dependence
on other regions for the production of many goods and services in the
supply chain. This means that an input-output model is inappropriate
as most of its entries would be zero, meaning that the region does not
produce those goods. It also means that a significant proportion of
the initial visitor expenditure will be devoted to bringing in goods and
services from outside of the local economy, such that the economic
impact will possibly be less than the initial expenditure.
This is felt to be the situation for the three shires that comprise the
Snowy Mountains region. ABS Census data reveals that the total
population of the region in 1996 was 18,942 1 , and total employment
of 8,430. Most regions of Australia for which there are input-output
models have total employment numbers of over 10,000 (see for
example Queensland Government Statistician’s Office, 1996).
Therefore it was not felt that an input-output approach should be
used for this study, but rather an economic model that was based
upon households rather than industries.
An Economic Multiplier for the Snowy Region
While small regions do not have the industrial structure to warrant the
input-output approach, it is clear that tourism expenditure creates
household incomes via wages paid to staff in hotels, restaurants,
service stations, retail shops, and via the business income earned by
unincorporated business (i.e. the local owners of small motels, cafes,
shops etc). This household income in turn results in induced
household expenditure on food, shelter, household goods, education,
health, entertainment, and so on.
This latter flow on effect is referred to as the Keynesian economic
multiplier (see Jackson, et al, 1998, p.12.8), named after the British
macro economist Keynes. By allowing for leakages of economic
activity out of the region in question via imports from other regions,
and via taxation payments, the Keynesian multiplier measures the
impact of exogenous expenditure, such as tourist expenditure, on
1 This number is known to be swollen by the winter snow season tourist influx.
28

Gross Regional Product (GRP). This is the regional equivalent of the
national concept Gross Domestic Product (GDP).
The formula for the Keynesian multiplier (k) is given by 2 :
k=
1
1 – c (1-t) + m
where c = the propensity for households to spend 3 ,
t = marginal propensity to tax out of GRP,
m = marginal propensity to import out of GRP.
Thus for an economy with an average consumption propensity of 0.9,
a tax rate of 30%, and an import propensity of 0.25, k = 1.6.
The question of values of c, t, and m for the Snowies region is not
easily answered from the available data sources, and some ingenuity
is required. For c, it is reasonable to assume that the consumption
behaviour of Snowies households is broadly similar to Australia as a
whole. The ABS Australian National Accounts (cat. no. 5206.0) show
the average ratio between household consumption and GDP to be
0.60. However, there is a difference between the average and the
marginal propensities.
Challen and Hagger (1979, p.55) estimate the marginal propensity for
the Australian non farm population to be 0.869, and for the farm
population the figure is zero. The figure for the whole population will
therefore be around 0.739, allowing for a farm population of 15% of
the Snowies total (ABS Census). However, this is out of household
disposable income, which is about 82% of GDP. When this
adjustment is made, the value of c becomes 0.605, which is
remarkably similar to the overall average ratio of consumption to GDP.
To find a value for t, we again assumed that the Snowies region would
not be greatly different from Australia as a whole. The ABS National
Accounts (cat. no. 5206.0) show the ratio to be 0.31.
2 See Jackson, et al, 1998, p.12.8.
3 In this specification, c is the marginal propensity to spend on household consumption out of GRP.
29

The import propensity m, for a region is not likely to be able to be
approximated by using national figures because a small region is less
self sufficient than the nation as a whole, and is therefore more likely
to import for both consumption, and business inputs.
We have approached the problem of estimating m for the Snowies
region by using location quotients 4 based upon ABS Census
employment data. Industry i’s location quotient (LQ) is defined as:
LQ i = (ER i / TER) / (EN i / TEN)
where ER i = employment in industry i in the region
TER = total employment in the region
EN i = employment in industry i in the nation
TEN =total employment in the nation.
Thus if a region devotes 20% of its employment to an industry, but
the nation devotes 25% of its employment to that industry, the LQ
would be 0.8, meaning that the region was only 80% of self
sufficiency in the output of that industry and would have to import
20% of its requirements of the output of that industry. The import
propensity would be 0.2 for that industry 5 .
The location quotients for the Snowies region industries are shown in
Table 6 below. Sectors which have location quotients in excess of one
are clearly export sectors from the point of view of the region,
because they are devoting a higher proportion of their labour to the
industry than would be needed for self sufficiency. The industry sector
Accommodation, Cafes, Restaurants is in this category as tourism is
an export activity for the region.
4 For a discussion of location quotients see West (1980).
5 Note that this is out of total industry output, which is not the same thing as GRP.
30

Table 6 - Location Quotients for Snowies Industries
INDUSTRY SECTOR SNOWIES
REGION
Agriculture, forestry and
fishing
Mining
Manufacturing
Electricity, Gas, Water
Construction
Wholesale trade
Retail trade
Accommodation, cafes,
restaurants
Transport & storage
Communication services
Finance & insurance
Property & business services
Government admin, Defence
Education
Health & community services
Cultural & recreational services
Personal & other services
TOTAL
EMPLOYMENT
AUSTRALIA LOCATION
QUOTIENT
1262 324330 3.50
7 86261 0.07
378 965036 0.35
367 58699 5.63
449 484084 0.84
275 446545 0.55
1119 1036648 0.97
1338 355287 3.39
234 332078 0.63
152 150188 0.91
134 296456 0.41
575 750195 0.69
391 373427 0.94
397 540063 0.66
554 725178 0.69
212 179055 1.07
352 277908 1.14
8196 7381438
To calculate the average location quotient for the whole region, we
would ideally take a weighted average of the individual sectors’
location quotients, where the weights would be the total output of
each sector. However, there is no available information on the value
of output of each sector for the region, so we have used employment
as a proxy.
The weighted average of those sectors which had a location quotient
below one was 0.42, indicating that some 58% of output must be
imported into the region from outside of the region (either from
elsewhere in Australia or overseas). To get a figure for the import
31

propensity that can be used in the multiplier formula, this 58% has to
be converted to a fraction of GRP. Using ABS national accounts data
(cat. No. 5209.0), the proportion of total output accounted for by
GDP is 30%. Assuming that this is a reasonable figure for the
Snowies, the import propensity for the region would be 58/30 = 1.93.
That is to say that the region imports goods and service which amount
to 93% more than the GRP for the region.
Substituting c = 0.605, t = 0.31, and m = 1.93 into the formula for k
gives k = 0.398. The interpretation of this estimate is that for each
$100 of visitor expenditure in the region, there is $39.80 generated
of total regional income. This figure is a result of two opposing
economic forces:
• the flow on effect to other industries which increases the
economic impact,
• the leakage effect of economic activity to savings, tax, and
imports, which decreases the economic impact.
Small regions would be expected to have a high leakage to imports,
and the Snowies region is clearly a case of this, resulting in the overall
multiplier effect to be less than one.
Total GRP Event Economic Impacts
The above analysis shows that the impact on GRP of visitor
expenditure in the Snowies region will be 39.8% of visitor
expenditure. Therefore, the GRP for the events which are the subject
of this report will be as shown in Table 7. Clearly the larger the
number of visitors, the larger the expenditure, and the larger the
impact on GRP.
32
Table 7 - Impact on Gross Regional Product of Summer Events
EVENT VISITOR EXPENDITURE $ IMPACT ON GRP $
AMBA Cup Mountain Bike Race 222,258 88,459
National Runners Week 294,871 117,359
Shakespeare Festival 43,617 17,360
Thredbo Jazz Festival 308,400 122,743

6. WHERE TO FROM HERE?
Once the economic impact of an event has been calculated the
potential to use this information is almost endless. Figures can be
used to lobby local government or industry for financial support in
future years. The information could also be used to justify the
scheduling of the event, or indeed stimulate support for its rescheduling.
The information gathered on sectoral expenditure should be used to
show the direct impact on the local sectors resulting from the event
in question. These results could then be used in order to illustrate the
benefits of the event to local industry as a valuable tool for gaining
sponsorship.
From here it is suggested that event and destination managers
develop survey templates that can be applied to many events in a
particular region so the economic impact of events can be compared
and their associated impacts assessed. It is hoped that this guide has
provided a starting point for the development of a template and a
consistent approach to the economic impact assessment of events
and festivals.
33

REFERENCES
Alreck, P. A. and Settle, R. B. (1995), The Survey Research
Handbook. 2 nd edition. Chicago, Irwin.
34
Adams, P. and B. Parmenter (1992) The medium term significance of
international tourism for the Australian economy, Bureau of
Tourism Research, Canberra.
Archer, B. (1982) “The value of multipliers and their policy
implications”, Tourism Management, No. 3, 236-241.
Brunt, P. (1997), Market Research in Travel and Tourism. Oxford,
Butterworth-Heinemann.
Challen, D.W. and A.J. Hagger (1979) Modelling the Australian
Economy, Longman Cheshire, Sydney.
Fredline, E., Mules, T., Raybould, M. & Tomljenovic, R. (1998),
Sweet Little Rock and Roller: The Economic Impact of the 1998
Wintersun Festival. Griffith University, Gold Coast.
Gratton, C., & Taylor, P.D. (1995), Impacts of Festival Events: a Casestudy
of Edinburgh, in Tourism and spatial transformations:
Implications for Policy and Planning. Wallingford, UK, eds
Ashworth, G.J. & Dietvorst, A.G.J.
Hall, C. M., (1992), Hallmark Tourist Events: Impacts, management,
and planning. London, Belhaven.
Jackson, John, Ron McIver, Campbell McConnell and Stanley Brue
(1998) Economics 5 th edition, McGraw-Hill, Sydney.
Jago, L.K., & McArdle, K.O. (1999), A Temporal, Spatial and
Thematic Analysis of Victoria’s Special Events, in Proceedings of
1999 CAUTHE National Research Conference. Adelaide, South
Australia, eds Davies, J. & Molloy, J.

KPMG. (1997), Melbourne International Flower and Garden Show,
1997: Satisfaction Assessment and Economic Impact Study.
Prepared for the City of Melbourne, Tourism Victoria and
International Corporate Event Services. KPMG, Melbourne.
McDonnell, I., Allen, J. & O’Toole, W.. (1999), Festival and Special
Event Management. Milton, Jacaranda-Wiley.
Mules, Trevor (1996) Kate Fischer or Liz Hurley? – Which model shall
I use? In Proceedings of the 1996 Australian Tourism and
Hospitality Conference, Bureau of Tourism Research, Canberra.
Queensland Government Statisticians Office (1996) Regional Input-
Output Tables Queensland 1989-90, Queensland Government,
Brisbane.
SATC. (1997), 1997 Opera in the Outback Economic and Social
Impact Study. Prepared by Richard Trembath Research. South
Australian Tourism Commission, Adelaide.
Veal, A. J. (1997), Research Methods for Leisure and Tourism: a
Practical Guide. 2 nd edition. London, Financial Times
Management.
West, Guy (1980) “Generation of Regional Input-Output Tables
(GRIT) An Introspection”, Economic Analysis and Policy,
10:1&2, 71-86.
35

APPENDIX A – SAMPLE PHONE SURVEY INSTRUCTIONS
Making the Phone Calls
36
Step One
a) “Good morning/afternoon/evening, my name is from the
(research organisation). Your phone number was selected at
random as part of a research project being undertaken by the
(research organisation). We are undertaking research surrounding
your recent visit to the (study region) as part of the Festival”.
b) “Could I please speak to (ask persons name)”. Back to a)
if necessary.
c) “There is a prize draw for participation in this survey. It consists of
2 adult passes to next year’s Festival.
Possible outcomes
• If the person who answered the phone is willing to undertake,
proceed with survey. They have already provided their phone
number, so you should have a good response rate.
• If they are unsure about taking part in the survey, then say, ”…we
estimate that the survey will take about 5 minutes. Your answers
will be anonymous and confidential”. OR: ask if you can call them
back at a better time. Record the time to call them back and
phone them later.
• If they refuse say, “…I am sorry for disturbing you, thank you for
your time.” Then terminate call and move onto the next number.

Notes
• If you get someone who does not understand English very well
and you can not make yourself understood, or someone who is
making nuisance responses, then say, “…I am sorry for disturbing
you. Thank you for your time.” Terminate call and go onto the next
number.
• Remember that we are after both respondents and their
accompanying persons expenditure if they did not participate in
the festival.
• If people are concerned about giving expenditure details tell them
that the results will be aggregated and that they will not be
identified as individuals.
37

AUTHORS
Ben Janeczko
Ben has formal qualifications in both tourism and hospitality from the
University of Canberra and the Canberra Institute of Technology. He
also has extensive industry experience in the hospitality sector. His
skills and interests are in sport, mountain and wine tourism, and
particularly tourism and information technology and tourism in
natural areas. Ben is a research officer for both the ACT node of the
CRC for Sustainable Tourism and the Centre for Tourism Research at
the University of Canberra.
Prof Trevor Mules
Trevor was formerly Deputy Director of the Centre for Tourism and Hotel
Management research at Griffith University Gold Coast campus. He has
published widely, and has a primary interest in tourism economics and
the economics of special events. He has carried out various pre- and
post economic impact studies for, among others, the Adelaide Grand
Prix, the Sydney 2000 Olympics, the Gold Coast Wintersun Festival, and
the 1999 Canberra Floriade, and has acted as consultant to public and
private tourism organisations. Trevor is the ACT Node Coordinator for
the CRC for Sustainable Tourism and Director of the Centre for Tourism
Research at the University of Canberra.
38

The Cooperative Research Centre for Sustainable Tourism was established under the Australian
Government’s Cooperative Research Centres Program to underpin the development of a
dynamic, internationally competitive, and sustainable tourism industry.
Our mission: Developing and managing intellectual property (IP) to deliver innovation to
business, community and government to enhance the environmental, economic and social
sustainability of tourism.
DEVELOPING OUR IP
Director of Research – Prof Leo Jago
1. Tourism, conservation and
environmental management
research
Co-ordinator – Prof Ralf Buckley
(r.buckley@mailbox.gu.edu.au )
• Wildlife Tourism
• Mountain Tourism
• Nature Tourism
• Adventure Tourism
2. Tourism engineering design and
eco-technology research
Coordinator – Dr David Lockington
(d.lockington@uq.edu.au)
• Coastal and marine infrastructure and
systems
• Coastal tourism ecology
• Waste management
• Physical infrastructure, design and
construction
3. Tourism policy, events and
business management research
Coordinator – Prof Leo Jago
(Leo.jago@vu.edu.au)
• Consumers and marketing
• Events and sports tourism
• Tourism economics and policy
• Strategic management
• Regional tourism
• Indigenous tourism
4. Tourism IT and Informatics research
Coordinator – Dr Pramod Sharma
(p.sharma @uq.edu.au )
• Electronic product & destination
marketing and selling
• IT for travel and tourism online
development
• Rural and regional tourism online
development
• E-business innovation in sustainable
travel and tourism
5. Post graduate education
Coordinator – Dr John Fien
(j.fien@mailbox.gu.edu.au)
6. Centre for Tourism and Risk
Management
Director – Prof Jeffrey Wilks
(j.wilks@uq.edu.au )
7. Centre for Regional Tourism
Research
Director – Prof Peter Baverstock
(pbaverst@scu.edu.au)
MANAGING OUR IP
General Manager – Ian Pritchard
(ian@crctourism.com.au)
1. IP register
2. Technology transfer
3. Commercialisation
4. Destination management products
5. Executive training
6. Delivering international services
7. Spin-off companies
• Sustainable Tourism Holdings
CEO – Peter O’Clery
(poclery@iprimus.com.au)
• Sustainable Tourism Services
Managing Director – Stewart Moore
(sts@crctourism.com.au)
• Green Globe Asia Pacific
CEO – Graeme Worboys
(graeme.worboys@ggasiapacific.com.au )
For more information contact:
Communications Manager – Brad Cox
CRC for Sustainable Tourism Pty Ltd
Griffith University, PMB 50
GOLD COAST MC, Qld 9726
Ph: +61 7 5552 8116, Fax: +61 7 5552 8171
Visit: www.crctourism.com.au or email:
Brad@crctourism.com.au

PERTH
Western Australia
Node Coordinator
Prof Jack Carlsen
Ph: 08 9266 1132
CarlsenJ@cbs.curtin.edu.au
DARWIN
Northern Territory Node
Coordinator
Ms Alicia Boyle
Ph: 08 8946 6084
alicia.boyle@ntu.edu.au
CANBERRA
Industry Extension Coordinator
Mr Peter O’Clery
Ph: 02 6230 2931
poclery@iprimus.com.au
Australian Capital Territory
Node Coordinator
Prof Trevor Mules
Ph: 02 6201 5016
tjm@comedu.canberra.edu.au
ADELAIDE
South Australia Node
Coordinator
Prof Graham Brown
Ph: 08 8302 0313
graham.brown@unisa.edu.au
CAIRNS
Cairns Node
Coordinator
Prof Philip Pearce
Ph: 07 4781 4762
philip.pearce@jcu.edu.au
MELBOURNE
Director of Research
Prof Leo Jago
Ph: 03 9688 5055
Leo.jago@vu.edu.au
LAUNCESTON
Tasmania Node Coordinator
Prof Trevor Sofield
Ph: 03 6324 3578
trevor.sofield@utas.edu.au
BRISBANE
Tourism Engineering,
Design and Technology Research
Dr David Lockington
Ph: 07 3365 4054
d.lockington@uq.edu.au
IT & Informatics Research
Dr Pramod Sharma
Ph: 07 3365 6513
p.sharma@uq.edu.au
Sustainable Tourism Services
Mr Stewart Moore
Managing Director
Ph: 07 3211 4726
sts@crctourism.com.au
Education Program Coordinator
Dr John Fien
Ph: 07 3875 7105
j.fien@mailbox.gu.edu.au
GOLD COAST
Chief Executive
Prof Terry De Lacy
Ph: 07 5552 8172
t.delacy@mailbox.gu.edu.au
Conservation and Environmental
Management Research
Prof Ralf Buckley
Ph: 07 5552 8675
r.buckley@mailbox.gu.edu.au
LISMORE
Centre for Regional
Tourism Research
Prof Peter Baverstock
Ph: 02 6620 3809
pbaverst@scu.edu.au
SYDNEY
New South Wales
Node Coordinator
Mr Tony Griffin
Ph: 02 9514 5103
tony.griffin@uts.edu.au
International Program
Co-ordinator
Dr Johannes Bauer
Ph: 02 6338 4284
jbauer@csu.edu.au